SEPTEMBER 7, 2014 Where Is the Smart Venture Capital Money Going in Digital Health & Health IT?

Here is some interesting reading:

https://www.cbinsights.com/blog/smart-venture-capital-digital-health/

The digital health / health IT space, there are a few key areas where these brand-name venture firms appear to see the most opportunity for disruption. Analyzing the Business Social Graph, we found four markets that smart money VCs seem particularly keen on. These include

  • Healthcare cost transparency – Companies providing price transparency solutions with the goal of facilitating healthcare insurance plans and prescription complexities for consumers, businesses as well as patient billing, costs and services for healthcare companies. Firms include Stride Health (NEA, Kleiner Perkins), Pokitdok (CRV), GetInsured (Bessemer Venture Partners) and Eligible (Andreessen Horowitz).
  • Big data healthcare analytics – Companies offering verticalized predictive and prescriptive data and analytics solutions for the healthcare sector. Firms include Comprehend Systems (Sequoia Capital), Zephyr Health (Kleiner Perkins), Health Catalyst (Sequoia Capital) and SolveBio (Andreessen Horowitz).
  • Quantified self – Companies using sensor and data technologies to track health and wellness areas including calories burned, steps taken or sleep rate and transmitting the information to you digitally. These companies, often part of the wearables space, include both software and wearable tech startups including MyFitnessPal (Kleiner Perkins, Accel), Jawbone (Sequoia, Khosla, Kleiner Perkins, Andreessen Horowitz), Misfit (Founders Fund, Khosla), Pebble (CRV).
  • Real-time healthcare – Companies offering platforms and technologies to get on-demand access to healthcare and/or licensed health practitioners, consultations and education. As we’ve previously highlighted, financing growth in the telehealth space has been significant. These include Doctor on Demand (Andreessen Horowitz, Google Ventures), Healthtap (Khosla Ventures), First Opinion (Felicis Ventures, Greylock Partners) and TalkSpace (Spark Capital).

As both tech and healthcare corporations track the fast-changing landscape of digital health, following the markets and companies where smart money investors are focusing their attention is a great way to really see where disruptive technologies and business models are taking shape.

A list of the digital health/health IT companies in this analysis is available on the ‘Research’ tab, after logging in to CB Insights. Note: This research is only available to paid subscribers with access to CB Insider.

Check out the CB Insights Venture Capital Database.

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